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Abstract

In an ever intensifying global competitive market, the management of projects, particularly product development efforts, increasingly is one of the few areas which can produce a sustained competitive advantage. Firms that can bring products to market faster can extract higher initial margins, can be more responsive to their customers, and will have products with longer sales lives. Critical Chain is a new methodology that applies Eli Goldratt's Theory of Constraints to project management in order complete projects faster and with greater predictability while simultaneously making more efficient use of resources, The Critical Chain method accomplishes this by building project networks with average task durations, aggregating buffer at the end of projects where it can absorb unplanned iterations and other delays, and de-conflicting resources, both withill and across projects. This new project management methodology was researched by spending seven months on site with ITT Night Vision and applying the method to two product development projects. In addition, benchmarking studies of previous product development efforts at the same site and of another lead user of the tool were conducted to provide both qualitative and quantitative comparison data, Critical Chain appears to minimize schedule risk while simultaneously minimizing project duration, and has the potential to improve both communication and employee morale,
Thesis supervisors: Steven D. Eppinger, Associate Professor, Sloan School of Management Anna Thorntnn, Assistant Professor, Department of Mechanical Engineering
[3]
[4]

Copyright

This record is the front matter from a document that appears on a server at MIT and is used through permission from MIT.

Country

United States

Language

English (United States)

This text was extracted from a PDF file.

This is the abbreviated version, containing approximately
28% of the total text.

Page 1 of 6

This record is the front matter from a document that appears on a server at MIT and is used through permission from MIT. See
http://theses.mit.edu:80/Dienst/UI/2.0/Describe/0018.mit.theses/1998-248 for copyright details and for the full document in image
form.

Applying Critical Chain to Improve the Management of Uncertainty in
Projects

by

Stephen Carl Cook

B. S. Electrical Engineering, United States Naval Academy, 1989
Submitted in partial fulfillment of the requirements for the degree of
Master of Science
in Electrical Engineering and Computer Science
Sloan School of Management

Lawrence S. Abeln
Director of Master's Program Sloan School of Management
Arthur C. Smith Chairman, Committee on Graduate Students Department of Electrical Engineering and
Computer Science

ARCHIVES MASSACHUSETTS INSTITUTE OF TECHNOLOGY LIBRARIES
OCT 27 1999

Massachusetts Institute of Technology Page 1
Dec 31, 1998

Page 2 of 6

Applying Critical Chain to improve the management of uncertainty in projects

Applying Critical Chain to improve the Management of Uncertainty in Projects

By Stephen Carl Cook

Submitted to the Sloan School of Management and the Department of Electrical Engineering on
May 9, 1998 in partial fulfillment of the requirements for the degrees of Master of Business
Administration and Master of Science in Electrical Engineering

Abstract

In an ever intensifying global competitive market, the management of projects, particularly
product development efforts, increasingly is one of the few areas which can produce a
sustained competitive advantage. Firms that can bring products to market faster can extract
higher initial margins, can be more responsive to their customers, and will have products with
longer sales lives. Critical Chain is a new methodology that applies Eli Goldratt's Theory of
Constraints to project management in order complete projects faster and with greater
predictability while simultaneously making more efficient use of resources, The Critical Chain
method accomplishes this by building project networks with average task durations, aggregating
buffer at the end of projects where it can absorb unplanned iterations and other delays, and de-
conflicting resources, both withill and across projects. This new project management
methodology was researched by spending seven months on site with ITT Night Vision and
applying the method to two product development projects. In addition, benchmarking studies of
previous product development efforts at the same site and of another lead user of the tool were
condu...